Arrests for April 2003

These arrests were made possible through
the cooperation of the Frauds Bureau, law enforcement, the insurance
industry and the public.

To report suspected incidents of insurance
fraud, call 1-888-FRAUDNY

CAUGHT!
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SENTENCED

On 4/7/03, Dale A. Clegg, a self-employed painter, pled
guilty in Chili Town Court to criminal possession of a forged instrument and was sentenced
to a one-year conditional discharge and ordered to pay a court surcharge of $125. Clegg
was arrested in October 2002 for submitting to a general contractor two forged
Certificates of Insurance as proof of workers compensation and general liability
insurance when no such coverage existed.

GUILTY

Tammy Turpin of Amherst, NY, pled guilty on 4/17/03 to
attempted grand larceny and possession of a forged instrument. Turpin was injured in an
auto accident in July 2002 and filed a claim with New York Central Mutual Insurance
Company for $6,000 in lost wages under the no-fault portion of her insurance coverage. She
claimed to have been employed as a district manager at Brewster Glass Company of Virginia
Beach, VA, earning $750 a week at the time of her accident. In support of her claim,
Turpin submitted a wage verification form purportedly from Brewster Glass. However, an
investigation by the Frauds Bureau and New York Central Mutual revealed that while she had
been employed at one time as a sales associate at Brewster earning $6.25 an hour, she did
not work there at the time of the accident. Moreover, no one at Brewster was familiar with
the "wage verification form."

WORLD TRADE CENTER FRAUD

Since the tragic events of September 11, the Frauds
Bureau has been fast-tracking World Trade Center claims to ensure that they receive prompt
attention. The Insurance Department has actively coordinated with other law enforcement
agencies to make certain that a strong line of communication exists among all agencies
involved in this issue. Because there is a crossover between insurance fraud and charity
fraud in some instances, that link has proven invaluable in that it fosters the exchange
of information that can be critical to an investigation. The Bureau has tracked more than
65 suspected fraudulent WTC-related claims thus far and a number of arrests have been
made.

THATS A LOT OF DAMAGE

Arrested on 4/30/03

Charged with insurance fraud in the 3rd degree

As a result of a joint investigation by the Frauds Bureau
and the Suffolk County District Attorneys Insurance Crime Unit, a body shop owner
was accused of submitting a fraudulent estimate for the repair of a Mack dump truck owned
by a road construction company. The truck was in a collision with another truck that
sustained $600 in damages. The shop owners repair estimate for the Mack truck
totaled more than $27,000. A reconstruction engineer for heavy equipment hired by Utica
Mutual Insurance Company determined that most of the damage to the Mack truck was
unrelated to the accident.

MAKING A PROFIT

Arrested on 4/29/03

Charged with insurance fraud in 3rd degree and attempted grand larceny in
the 3rd degree

A Brooklyn man purchased auto insurance coverage with five
different insurers (Amica Mutual, Travelers, AIG, GEICO, and Great American) for one car.
In an attempt to make a profit, he filed a claim with each of these insurers following an
accident that purportedly occurred on 10/29/01. His arrest was the result of an
investigation by the Frauds Bureau and the NYPDs Fraudulent Accident Investigation
Squad.

NO-FAULT FRAUD

Arrested on 4/23/03

Charged with grand larceny in the 3rd degree, insurance fraud in the 3rd degree and falsifying business records in the 1st degree

An investigation by the Frauds Bureau and the NYPDs
Fraudulent Accident Investigation Squad led to the arrest of a New York City woman accused
of allowing her name to appear on a fraudulent police accident report in an effort to
collect medical benefits from Nationwide Insurance Company under the no-fault portion of
her auto insurance coverage.

ADD ONs

Arrested on 4/23/03

Charged with insurance fraud

Three Queens residents were charged with adding their names
to a police accident report following an accident in which none of the three was involved.
An investigation by the Frauds Bureau and the NYPDs Fraudulent Accident
Investigation Squad led to the arrests.

THIS AINT NEW JERSEY

Arrested on 4/22/03

Charged with possession of a forged instrument, insurance fraud and falsifying
business records

This investigation began when State Farm Insurance Company
informed the Frauds Bureau that a Bronx man had provided a State Farm insured with bogus
insurance coverage. A Frauds Bureau investigator, acting undercover, visited the suspect
at an insurance brokerage and requested insurance for a car. The suspect, who is not a
licensed broker, informed the investigator that he could provide New Jersey auto ID cards
for a fee of $700, although the investigator had a New York drivers license and New
York ownership papers. The investigator produced the money and the transaction was
completed. The suspect was later arrested.

DEEP POCKETS

Arrested on 4/17/03

Charged with scheme to defraud and insurance fraud

A joint investigation by the Frauds Bureau and the Suffolk
County District Attorneys Office resulted in the arrest of a former independent
insurance salesman charged with issuing temporary auto insurance identification cards and
pocketing the premiums. He was also accused of accepting premium payments for homeowners
coverage but failing to remit the money to the appropriate insurers. More than 20
customers were involved in the misappropriation of $8,000.

WHAT ARE FRIENDS FOR

Arrested on 4/17/03

Charged with insurance fraud in the 4th degree, attempted grand larceny in
the 4th degree and falsifying business records in the 2nd degree

On 2/10/03, the defendant in this case filed a claim with
State Farm Insurance Company stating that he had left his van running in the parking lot
of a local mini-mart where it was stolen. The van was later involved in a hit-and-run
accident. An investigation conducted by the Frauds Bureau, the New York State Police and
the DMV revealed that the defendant had illegally placed the car on his policy when his
friend, the real owner, was unable to obtain insurance coverage because of a bad driving
record.

NOT VERY NEIGHBORLY

Arrested on 4/16/03

Charged with grand larceny in the 4th degree, forgery in the 2nd degree, falsifying business records in the 1st degree and insurance fraud in
the 3rd degree

A building superintendent from Brooklyn was accused of
selling fraudulent auto insurance identification cards to two of his neighbors and
pocketing $3,400 in premiums. Both Nationwide and Allstate Insurance Companies, whose
names appeared on the cards, confirmed that the cards were fraudulent. The suspect is not
licensed to sell insurance. His arrest was the result of an investigation by the Frauds
Bureau and the NYPDs Fraudulent Accident Investigation Squad

MORE NO-FAULT FRAUD

Arrested on 4/16/03

Charged with grand larceny in the 3rd degree, insurance fraud in the 3rd degree and falsifying business records in the 1st degree

An investigation by the Frauds Bureau and the NYPD’s Fraudulent Accident Investigation Squad resulted in the arrest of a New York City man on charges that he generated a fraudulent police accident report in an attempt to collect no-fault medical benefits from Progressive Insurance Company.

CAN YOU HEAR ME NOW?

Arrested on 4/15/03

Charged with falsifying business records in the 1st degree and insurance
fraud in the 5th degree

An Elmira audiologist and owner of an audiology services
company was charged with performing audiogram tests after his license to practice was
suspended in 2002 for conviction of grand larceny and tax evasion. He allegedly forged the
initials of other licensed audiologists on the test records and then billed the
patients Medicare coverage for the procedures. Following an investigation by the
Frauds Bureau, the suspect was arrested on a warrant by the Broome County Sheriffs
Department.

FRAUDULENT CERTIFICATES

Arrested on 4/15/03

Charged with forgery in the 2nd degree

An investigation by the Frauds Bureau and the Orange County
Sheriffs Office led to the arrest of a Newburgh, NY, man for presenting fraudulent
Certificates of Insurance to his customers, claiming that workers compensation and
liability insurance were in effect when no such coverage existed. In some instances, he
submitted false information to insurers about the number of workers employed by his
customers or the nature of the risk involved in the work. Conducting business as both a
general contractor and a sub-contractor, the defendant not only exposed his customers to
increased liability but was also responsible for some of his customers experiencing
significant rate increases once the material misrepresentations were corrected.

SUGAR, SUGAR

Arrested on 4/13/03

Charged with insurance fraud in the 4th degree

Two unemployed upstate residents  one the former owner
of an auto service shop and the other a former employee  were accused of falsely
informing a customer that her trucks engine problems were caused by sugar in the gas
tank. They told her that because this constituted vandalism, her insurer would pay for a
new motor. On their word, the customer filed a $2,300 claim with Progressive Insurance
Company. However, an investigation by the Frauds Bureau, the New York State Police and the
Niagara County District Attorneys Office uncovered evidence that it was the two
defendants who actually put the sugar in the tank in an effort to collect the insurance
settlement.

NO COVERAGE

Arrested on 4/10/03

Charged with offering a false instrument for filing

An investigation by the Frauds Bureau and the Westchester
County District Attorneys Office led to the arrest of a licensed insurance broker
charged with filing a false Certificate of Insurance with the County of Westchester in an
effort to secure a construction project for his client. The Certificate falsely indicated
that the client had the workers compensation and liability insurance required for
the job when in fact no such coverage existed.

PHONY BILLING

Arrested on 4/8/03

Charged with insurance fraud

A former billing clerk at an Albany optical company was
accused of submitting fraudulent billing forms to Capital District Physicians Health Plan
by changing dates of service and the attending doctors name. The forms she submitted
for the month of February 2002 alone billed CDPHP for $23,665. The defendants arrest
is part of an ongoing investigation being conducted by the Frauds Bureau with the
assistance of the Albany County District Attorneys Office. On 3/27/03, Dierdre
Wolberg, the co-owner of the optical companyState Opticianspled guilty to
insurance fraud and grand larceny. Wolberg was arrested on 3/4/03 and charged with
defrauding the Capital District Physicians Health Plan of $37,000 in bogus claims.
Evidence was uncovered that State Opticians sent 832 claims to CDPHP with the forged
signature of a doctor who had died. State Opticians backdated the claims to coincide with
the period when the doctor worked for the company and had a contract with CDPHP. In
addition, the company may have inflated some of its claims and submitted bills for
services never rendered. Wolberg is scheduled to be sentenced on May 15. One of the
conditions of her sentencing will be to return the $37,000 in fraudulent claims
settlements she received from CDPHP.

DOCTORED CLAIM

Arrested on 4/7/03

Charged with insurance fraud in the 3rd degree

An investigation conducted by the Frauds Bureau and the
State Police led to the arrest of a paramedic who claimed that her husband hit her car
while it was parked in the driveway. She filed a claim for the damage with New York
Central Mutual Fire Insurance Company and received a settlement of $3,200. However,
evidence showed that the damage was caused when she rear-ended another car. She
subsequently returned the check to the insurance company.

REPOSSESSED

Arrested on 4/7/03

Charged with falsifying business records in the 2nd degree

An Otsego County woman was arrested for using a forged
Certificate of Insurance in order to reclaim a snowmobile that had been repossessed. This
arrest was an offshoot of an investigation conducted by the Frauds Bureau, the Cooperstown
Village Police Department and the New York State Police that led to the arrest of a
licensed insurance agent on 3/26/03 charged with stealing premiums and forging insurance
documents.

The husband in this case, a licensed life insurance agent,
reported to the Webster Police Department that after returning home from a get-away
weekend in January 2003, he and his wife discovered that their home had been broken into
and a number of personal belongings stolen. They filed a claim for $35,000 with Allstate
Insurance Company for the loss. However, an investigation by the Frauds Bureau, the
Webster Police Department and Allstates Special Investigations Unit revealed that
their home had not been burglarized and the claim was fraudulent. The investigation was
initiated after the Webster Police Department became suspicious of a possible staged
burglary.

NO LICENSE

Arrested on 4/1/03

Charged with forgery in the 1st degree and petit larceny

An investigation by the Frauds Bureau, the City of Beacon
Police Department and the New York Auto Insurance Plan led to the arrest of the owner of
an auto insurance agency for accepting insurance premiums but failing to remit the money
to an insurer. The suspect would assign customers to an insurance company or the New York
Auto Plan and issue fake auto identification cards printed on his own computer. These
customers were unaware they were driving without insurance until problems with the bogus
cards arose in routine police checks or, as in one case, when a customer switched from one
insurer to another. During the investigation, it was determined that the insurance agency
was not licensed to operate an insurance business and further, that the agency had no
relationship with any insurance carrier. A report of suspected fraud sent to the Frauds
Bureau by Progressive Insurance Company sparked the investigation.

WORKERS COMP FRAUD SWEEP CONTINUED

Arrested on 4/1/03

Charged with violations of the Workers Compensation Law

Three more arrests were made as part of a sweep conducted
during two separate days, April 18 and 26, 2003. The suspects were charged with defrauding
the workers compensation system by claiming they were unable to work due to injuries
sustained on the job when they were actually employed. The Frauds Bureau, the Queens
District Attorneys Office, the Workers Compensation Fraud Inspector
Generals Office and New York City Transit conducted the investigation that brought
about the arrests. Another arrest is pending in this case.

PRIOR SUPPLEMENTS

MARCH 2003

GUILTY

Timothy Walters, a former New York State-licensed insurance
agent for Combined Life Insurance Company, pled guilty on 3/3/03 to criminal possession of
a forged instrument in the 3rd degree in full satisfaction of all charges.
Walters conspired with a Watkins Glen couple arrested on 1/30/03 to backdate an
application for a sickness income policy in order to cover a loss that occurred before the
application was submitted. An investigation by the Frauds Bureau and Combined Lifes
Special Investigations Unit resulted in the three arrests.

FORGED SIGNATURE

Arrested on 3/28/03

Charged with grand larceny in the 4th degree, criminal possession of a forged
instrument and criminal possession of stolen property

An investigation by the Frauds Bureau and the Queens
District Attorneys Office led to the arrest of a Jamaica, NY, man charged with
forging the signature of the rightful beneficiary to a workers compensation benefit
check in the amount of $2,550 and pocketing the money.

MURDER

Arrested on 3/27/03

Charged with murder in the 2nd degree, manslaughter in the 2nd degree, criminally negligent homicide and conspiracy to commit insurance fraud

A Brooklyn man was accused of attempting to stage an
accident that resulted in the death of a Queens grandmother. It was alleged that the
defendant intentionally drove his car into the car being driven by the victim, causing her
to lose control and crash into a tree. Also arrested was a woman accused of assisting the
Brooklyn man in fleeing the scene of the accident. She also allegedly had a fraudulent
drivers license and welfare card. She was charged with forgery in the 2nd degree, criminal possession of a forged instrument in the 2nd degree, criminal
possession of forged devices and hindering a prosecution in the 2nd degree. The
Frauds Bureau, the Queens District Attorneys Office and the NYPDs Fraudulent
Accident Investigation Squad pooled resources in this investigation.

WHILE THEY WERE SLEEPING

Arrested on 3/21/03

Charged with insurance fraud in the 3rd degree and attempted grand larceny
in the 3rd degree

An investigation by the Frauds Bureau, the Seneca County
Sheriffs Department and Progressive Insurance Companys SIU brought about the
arrest of a couple from Romulus, NY, on suspicion that they tried to defraud Progressive
of $6,350. During the early morning of 7/26/02, the Seneca County Sheriffs
Department found the couples car on fire in nearby Waterloo. Evidence revealed that
the cause of the fire was arson. The couple reported to the Sheriffs Department that
their home was broken into while they slept and their car keys and car were stolen.
However, the couple subsequently produced the only two sets of keys that existed to their
car and turned them over to Progressive. The defendants allegedly made material
misrepresentations about the theft and subsequent fire on the claim they filed with
Progressive.

AT THE SCENE

Arrested on 3/1/03

Charged with possession of a forged instrument in the 2nd degree

The defendant in this case produced a fraudulent insurance
identification card at the scene of an auto accident on 6/7/02. His arrest was the result
of the joint efforts of the Frauds Bureau and the Mt. Pleasant, NY, Police Department.

It should be noted that arrests and indictments
are merely accusations and that a defendant is presumed innocent until
proven guilty.